To expect. Francine leena nair is in charge of one of the most exclusive Luxury Brands of the world, chanel. The french fashion house, known for its iconic designs and fragrances, made the avantgarde move to appoint her to the top job. Previously a Human Resources veteran, she spent three decades at unilever before switching from the world of fastmoving consumer goods to haute couture and beauty. The firms history is legendary, from its founder, gabrielle, or coco, to its fans, including marilyn monroe. For leena nair, its a chance to make history. Leena i want to change the world but look good while doing it. Francine on this episode of leaders with lacqua, i speak to leena nair about her professional and personal journey, how it defines her leadership style, and her unique approach at the top of luxury. Leena nair, thank you so much for joining us here on bloomberg. Leena delighted to be here. Francine whats it like being a chanel chief executive . Leena it is the best job in the world. Its creative, its energetic, its vibrant, the sector is doing well. Its a great place to be. Francine what kind of difference do you want to make at chanel . Is it on the business, is it longevity, is it what it stands for, is it sustainability . Leena you know, i want to lead chanel into the future along with my team. And lead chanel into the future by protecting whats core to us, by protecting our differentiation, protecting whats unique about us. And by evolving as a scaled, iconic business and brand. It is always important to understand the context we operate in. The context we have externally is very, very dynamic. Geopolitical uncertainties, macroeconomic challenges, inflation, complete fragmentation, Media Channels, ecosystems. Winning hearts and minds of people is so difficult in todays day and age. So we see all of that externally. Ai. I mean, theres not a week you dont hear about ai. So all of this is happening externally. And internally, it has been a phase of rapid growth. In the last 10 years, we have more than doubled our revenue, weve more than doubled the number of people who work for us, weve more than doubled our distribution presence, weve more than doubled the number of countries we have presence in, so thats a lot of growth. So my role, along with my leadership team, is to ensure that we make coherent exchanges, that we make sense of these changes, and we are constantly shaping whats next. Francine as far as i can remember, chanel is this beautiful, highend luxury, everybody wanted the products, but it was always quite secretive. And then, there has been an opening in the last couple of years, through cultural events, podcasts. Why is that . Can a highend Luxury Company no longer be secretive in 2024 . Leena you know, for me, never having been in the world of luxury, of sophistication, of refinement, i didnt know what to expect when i came to chanel two and a half years ago. But its a very humble company. People are truly humble. Youve met many of my teammates. And it comes from a sense of we dont say things unless weve really done them. So, high integrity. So wed rather do things before we speak about them. So some of the shyness has been to do with that. And i think a part of the opening up is, also, as weve grown larger, and i explained some of the internal context weve been through rapid growth, being in so many markets, having so many people work for us, it becomes important to be clearer and more open about who we are, what we stand for. It is a 100yearold company. Its important to say what we do to have been a big inspiration all these years, to continue to be a beacon of inspiration for the next 100 years. Francine is that because we are buying luxury differently, so that clients and customers want more of the story than they did at 10, 15 years ago . Leena i think there is no typical client, and there is no one reason to engage in luxury. Truly, we see all kinds of clients. People who are longtime fans of chanel. People who are dedicated buyers of couture. People who are firsttime buyers. In fact, firsttime buyers are 30 of our clients, which is a lot. We see a lot of gen z and alpha. 35 of luxury consumers, by 2030, are going to be gen z and alpha. Its a hard number to believe. But the vibrancy, the vitality is huge. Because each of those clients have a different set of reasons for why they engage with us. So for gen z and alpha, in part, they buy because they want to buy less and buy better. They want to buy, because they see it as a financially wise investment. But everybody buys for different reasons. For me, its part of continuing to build our brand, our reputation, our company. And telling our story in engaging ways to all sorts of clients. Francine do you have to speak differently, leena, to the Younger Generation . Leena no, not really. Our story of savoir faire, our story of craftsmanship, our story of how many hours goes into making this jacket, like 100 hours, all handmade, is still the core of our story, our craftsmanship, our savoir faire. It is still how people engage with luxury, the quality of it, the beauty of it. A thing of beauty gives us all joy. So that is still a very, very big reason how people look at luxury, the quality, the savoir faire, being part of that. And the story of Gabrielle Chanel, and the story of her dna, and what she means for us, a spirit of constantly innovating in radical ways. Because, when she designed clothes, it was about the freedom of movement. It was about anticipating the needs of the modern woman. It was about creating trousers, crossbody bags, so that women could ride bikes, ride horses. So it was about supporting women to be and become whoever they wanted to be and become. It was about being on this journey of selfdiscovery with women, and that core part of our story doesnt change. It is the story of supporting women to be and become the best versions of themselves, to discover themselves, and that story still engages, no matter what age you are. And the core of our stories really doesnt change. How we see it might change, there are more channels than you and i can count today. There are all sorts of things, instagram, tiktok, everything thats coming. Some of the Media Channels might change, some of the ecosystem in how we engage might change, but the core of our story is very much who we are at chanel. Francine Gabrielle Chanel was like a pioneer. I feel like, when you talk about her, its also maybe telling a little bit about your story. You have a unique story. You grew up in a town in india where not many females were educated to a higher level. Leena yes. Francine so what was that journey like . Leena it was a long journey. I grew up in a small town in the southwest of india called kolhapur. And the world of luxury, refinement, sophistication was very far away from where i grew up. It was a small town like any other. Most of my memories of me running barefoot in the town, or having my little bike and riding around. Women being ambitious was not the norm. In fact, i remember my mother constantly telling me, who will marry you, you are so ambitious, and do you really know what youre going to do with your life . So, very limited access to role models, to opportunities. I did engineering after sort of convincing everybody in my family that engineering was good for girls, which was great. It was electronics and telecommunications. I quite enjoyed, again, being in the minority, but learning a lot more about the world of technology, which we are all now part of. Then i did my management studies, worked all over the country as part of unilever. I had an allaround experience, a handson experience, worked in the shop floor, worked in frontline sales, rode the trucks in the morning, going to the train, selling tea. So it was a fun experience. It was an adventure. It meant being constantly underestimated. It meant that you always look different, because you were the first woman, the first brown person, the first asian, the first indian, the first person of color to lead a global luxury brand. Youre always the first. Youre always underestimated. People dont know exactly what to expect. Theyre suspicious of what your agenda might be. And along with it comes the responsibility of making it easier for those who come after you. So i feel a tremendous privilege, tremendous sense of responsibility to make it easier, which means questioning norms, being a role model, mentoring as many people as i can, trying to make it easier for others. Constantly championing a more equal world. Francine you like a challenge. Is there ever a challenge that you actually shied away from . [laughter] leena you know, every single thing ive done, its almost as if somebody has said, it cant be done. I remember i was in a factory, and i said, i want to go on the night shift, and they said no, we dont put women on the night shift. I said, how will i be a successful production manager or personnel manager of a factory if i never went into the night shift and knew how a third of my people worked . So, in some ways, it has fueled my determination. It has fueled some of my ok, i am going to show this is possible, a sense of i am going to get on and do it. It also gives me courage, because i feel, sometimes, im not just doing it for me. Im doing it for everyone else who comes after me. So it gives me courage, too. It fuels my determination and fuels my courage. I dont shy away from challenges, and i always tell women who ask me for advice, put your hand up for the most difficult job. Put your hands up for the things that are challenging. Go in there and lean into things that are difficult and challenging, because thats what gives you the greatest credibility, respect, reputation as you build your career. Francine coming up, chanels leena nair on the longterm outlook for luxury and the changing role of what it means to be a chief executive. Francine chanel is behind some of the most recognizable designs and fragrances in modern fashion. The french luxury house is still privately held by the billionaire family wertheimer, involved with the company over the past century. I continue my rare interview with the firms chief executive, leena nair. Do you see that the highend luxury, does that even go higher in luxury . That actually theres a lot of players in the fashion world right now, in the luxury world, and its really the ones that are very high that will do well. And does that also justify some of the price increases we have seen at chanel . Leena our prices are related to our cost prices. We use exquisite raw materials. And our production, as you know, is very rigorous, laborious, handmade. So we raise our prices according to the inflation that we see. So they are really linked to the cost price. Weve also made a commitment to price harmonization across the world, which means a client should not experience excessive price differentials, no matter where they buy. Francine the secondhand market is also something that we are seeing more and more in the last four to five years. What does that mean for a company like chanel . Leena you know, we have famously not been on ecommerce. We always said we want our clients to buy from our beautiful stores, because we believe that clients must enjoy the immersive experience, the immersive physical experience, where they build a relationship with the fashion advisor, the beauty advisor, the boutique assistant, which is so magical and so core to the chanel story. Francine how do you see the china market compared to the u. S. Market . Its not that volatile, actually. Youve had a base that has stayed for quite some time. Leena china is a very Central Market for the luxury goods system because of the fast adoption of luxury. Because of the appreciation of refinement and sophistication. So its a very important and essential market for us. I came back recently from china, and i was really happy to see the energy and vibrancy in the market. So we continue to run our business for the longterm and continue to invest in china for the longterm. Similarly, u. S. I see u. S. As a longterm market for luxury. It always has been. And all markets see a bit of ebbs and flows. But if you keep a longterm perspective, you continue to invest. I mean, we just opened our beautiful watches and fine Jewelry Store on the 5th avenue. It is absolutely breathtaking. Designed by peter marino, with everything that you would expect in a chanel boutique. Great personalization, intimacy, beauty, things that uplift you. So we believe in both of these markets, and they are important to us. Francine so its probably rougher being a chief executive in 2024 than it was for the last 20 years because of the constant change. And we dont know what ai brings either. Leena yes, it is. It is definitely more challenging. One of my principles as a leader is about tapping into collective intelligence. Because i truly believe the days of the superhero leader are well and truly behind us. The world is so complex. There are crises on multiple levels. That to imagine one individual, no matter how bright they are, how experienced they are, can have answers to all the questions . No chance. Thats why i believe in collective intelligence, diverse perspectives. Go around the room, listen to every voice. Its very important to me that im not just listening to the dominant voices in my room, my meeting room, but listening to all voices around the table. Francine is that why you lead by empathy . You always say you lead and lift, which is not always easy. Leena i remember in the early days of my career at unilever, when i was going to a place, in a factory, and if i felt it was not safe for women, i would go back and fight the battle to make sure it was safer for women who came after me. I was always questioning the norms, challenging what was happening, so i could make it easier for others who come after me. Its beautiful in chanel. We have 76 women, 60 of my Management Team are women. So its easier to set into place everything to support the development and career of all these talented women and create a more equal world. Francine would you ever go into menswear . Would chanel ever go to menswear . [laughter] leena its a rare time in our history where we have a female founder, a female ceo, female creative director of fashion, so its a rare time. And i think we support women everywhere in such a beautiful way. You know, we do make things for men. Bleu is one of the largest selling perfume for men, and i hope it stays that way. We are really by women, for women, support women, and we are here to empower and support women in the journey of becoming. Francine youre right, the perfume. I forgot the perfumes. Talk to me a little bit. There are things people dont understand about chanel. We talked about the foundation. For so long, it was all kept in house. But you also have other brands. How do you see all of these Companies Working together . Leena you know, we are the world leader in many categories. There is all the fashion, which is well known. We are in fragrances, in beauty, in skin care. And one of the things, as with my leadership team, which we started working on what we call our beacon of inspiration for the next 100 years, or we call the 100year plan, we are constantly thinking ahead. We started putting some building blocks, which is having a positive impact in the world. There is sustainability, environmental sustainability, and the womens empowerment and girls. We are one of the largest philanthropic organizations dedicated to Women Empowerment and girls. Francine its amazing, because not many people know that. Leena 125 million this year. So 100 million as soon as i came in, and now we have increased that to 125 million. So we are truly one of the largest organizations in the world. We work with 237 partners in 50 plus countries on beautiful programs that support women to be free to shape their destiny. Francine coming up, leena nair on how chanel is trying to change luxury and how her background in hr is helping to shape her mindset as a chief executive. Francine leena nair is used to breaking convention and changing norms in the workplace, including her transition from unilever and Human Resources to becoming the chief executive of one of the most prestigious names in luxury. She tells me how chanel is positioning for the future of fashion and what it means for her legacy at the iconic firm. How difficult is it for a big Luxury Company to be sustainable . I mean, you have very ambitious goals. Leena id like us to set the bar for luxury. I would like other luxury players to be inspired by what chanel does every day. We are one of the few luxury players that has now publicly set a goal of net zero 2040. So we want to really reduce our carbon emissions. So, for example, in carbon emissions, we are reducing our logistics, transport, and Carbon Footprint to do it digital. Chanel. Com saw an increase in traffic of 30 , with a 16 reduction in Carbon Footprint. Francine how much of this comes from, i guess, the heart, you know, trying to do good, and how much does this also play with consumers . Because in 5, 10 years, there will be even more focus on this. Leena you know, francine, i think clients believe luxury is sustainable, because they know we make fewer things, and we make them beautifully, and we make them with hands. And that is a genuine desire by clients to see us as sustainable is only going to go up. I mentioned about more gen z and alpha buying. They buy, because they want to buy less and buy better, which is the right mindset to engage with luxury. So it is going to be increasingly important. Francine leena, in sustainability, do you need to be a risk taker . The idea that, as a chief executive, i guess you need to be careful, but is there anything coming where you will challenge your risktaking . Leena you know, i think, for all of us, the world today is so complex and moving fast that you are constantly adjusting, being agile, ticking. For me, we are a courageous brand, because we walk in the footsteps of a courageous woman. Gabrielle chanel lived the life she wanted, courageously, passionately, made the choice she wanted courageously, passionately. One of her values is audacity. For me, audacity is so important. You call it risktaking, i call it audacity. Francine i actually prefer audacity. [laughter] it had a certain cachet that im sure Gabrielle Chanel would have loved. What have you learned about yourself as chief executive . You were in charge of hr for unilever. It is a massive company, 100,000 employees. Is it different actually being in charge of a company than being in charge of hr . Leena when i was moving to chanel, a mentor told me, you are doing a quadruple jump. I said, what do you mean . So it has changed on so many dimensions. Its public to private. Its fmcg to luxury. It is from anglo dutch to french heritage. I have weekly french classes. It is hr to ceo. So it has changed on all dimensions. Its not just one dimension, it has been all dimensions. And luxury is very different from fmcg. As you know, the preciousness, the rarity is not available every time. Its the balance between timeless, quest for new. Its all of that. Its different. To me, the principles of business and the principles of leadership are transferable across sectors. How to run a business across multiple countries, multiple product categories, multiple geographies, multiple cultures. How to galvanize and inspire teams across, again, multiple cultures. Multiple kinds. There are principles that hold you in good step, because people are people, at the end of the day. They have motivations, dreams, aspirations. They want to engage in a particular way. I must say, being in chanel has taught me to be more patient, more longterm. The treadmill of quarterly results, etc. , is a different world. So it has taught me to be more patient. Its taught me to appreciate a lot more. And i want to change the world, but look good while doing it. [laughter] francine i love that. Do you think about your legacy . Leena yes, i do. For me, i hope people say that i am a purposeled visionary leader, which means you spend a lot of time thinking about what are you doing, what are you giving back, what will be the difference you make . I think for me the biggest thing is if, 100 years from now, people look back and say that we, at chanel, did stuff today that inspires them, that helped them question norms about what theyre doing, audacious things that have redefined the norms, and supported women everywhere to feel like they can be the best version of themselves, i think that would be something that i would feel good about. If i made a few women in the world dream a little bit more about what they could achieve in their lives, i would feel very fulfilled in my life and career. Francine do you think you will ipo chanel . Leena no. [laughter] an ipo is not on the table. We love the privilege of being an independent company, being able to make longterm decisions 20, 30, 100 years on. Francine leena, best piece of advice and worst piece of advice you have ever been given . [laughter] leena best piece of advice, im actually going to do two. One is, fall in love with the life, the job you have. Dont wait for the perfect job. Fall in love with the job you have and make it the most perfect job in the world. And the other is, which my husband also tells me a lot, enjoy the journey as much as you enjoy the destination. We are always in a hurry to get somewhere. You get promoted, you are thinking about the next promotion no, no, no. Just enjoy. Breathe a bit and enjoy the journey as much as the destination. Worst piece of advice . I think most often, when you get a worst piece of advice, you just ignore it and forget about it. But i have received advice like, when i was in many rooms, the only woman in the room, the only woman in the room so many times in my career, i have received advice like, stay quiet for as long as you can and try to blend in. And, you know, you are already standing out, because you look different from the rest. And i think thats terrible advice. I think its really important you feel safe to be who you are. And it takes courage to be who you are. And you change by being who you are. Francine leena nair, thank you so much for joining us today. Food isnt just fuel to live. Its fuel to grow. My family relied on public assistance to help provide meals for us. These meals fueled my involvement in theater and the arts as a child, which fostered my love for acting. The feeding America Network of food banks helps millions of people put food on the table. When people are fed, futures are nourished. Join the movement to end hunger and together we can open Endless Possibilities for people to thrive. Visit feedingamerica. Org actnow when you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. The idea that we have saved five million peoples lives, its overwhelming. Its everything. Sonali hi. Im sonali basak, and this is the next big risk. Investing is a business of managing risk for the longterm. And in a year where recession fears abound, a war in ukraine